Does the payment of a dividend only affect the dividend payer under s. 125.7(2.01), or can, for example, the payment of a dividend by a publicly traded company affect all of its subsidiaries? CRA stated:
[I]t is our view that the word “it” used in subsection 125.7(2.01) of the Act refers solely to the particular eligible entity that is the subject of the provision. … [T]he payment of a dividend by a particular payer can only affect that payer’s entitlement to a subsidy under subsection 125.7(2) of the Act as a result of the application of subsection 125.7(2.01) … .